QUANTUMONLINE.COM SECURITY DESCRIPTION: NuStar Energy L.P., 9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, liquidation preference $25 per unit, redeemable at the issuer's option on or after 12/15/2022 at $25 per unit plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 9.00% per annum ($2.25 per annum or $0.5625 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date that will be the first day of the month the payment date falls (NOTE: the ex-dividend date is at least one business day prior to the record date). On and after 12/15/2022, distributions on the units will accumulate at an annual floating rate of the $25 liquidation preference equal to the three-month LIBOR plus a spread of 6.88%.
Holders of the Preferred Units will receive specific tax information from the company, including a Schedule K-1 which generally would be expected to provide a single income item equal to the preferred return (see page S-36 of the prospectus for details).
At any time within 120 days following the occurrence of a Rating Event the issuer may redeem the Units in whole, but not in part, at a redemption price in cash equal to $25.50 (102% of the liquidation preference of $25.00) plus an amount equal to all accumulated and unpaid distributions, whether or not declared (see prospectus for further information).
Upon the occurrence of a change of control the company will have the option within 120 days to redeem the preferred units at $25 per unit plus accrued and unpaid dividends. If the company has exercised their redemption right, the holders will NOT have the following conversion right. Upon the occurrence of a change of control, and the company has NOT provided notice that they intend to redeem the preferred units, the holder will have the right to convert the preferred units into common units under certain circumstances (see the prospectus for details).
This security was rated as Ba3 by Moody’s and B by S&P at the date of its IPO. In regard to the payment of dividends and upon liquidation, the preferred units rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common units of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
